ARTICLE 19
Government Service
(1)
- (a) Remuneration, other than a pension, paid by a Contracting State, a "Land" or a political subdivision or a local authority thereof to an individual in respect of services rendered to that State, the "Land" or subdivision or authority shall be taxable only in that State.
- (b) However, such remuneration shall be taxable only in the State in which the services are rendered, if the recipient of the remuneration is a resident of that State who:
- (i) is a national of that State not being a national of the other State; or
- (ii) not being a national of the other State, was a resident of the first-mentioned State before he rendered his services there.
(2)
- (a) Any pension paid directly by, or out of funds created by, a Contracting State, a "Land" or a political subdivision or a local authority thereof to an individual in respect of services rendered to that State, "Land", subdivision or authority shall be taxable only in that State.
- (b) However, such pension shall be taxable only in the other Contracting State if the recipient is a resident and a national of that State, without being a national of the State from which the pension originates.
(3) The provisions of Articles 15, 16 and 18 shall apply to remuneration and pensions in respect of services rendered in connection with a business carried on by a Contracting State, a "Land" or a political subdivision or a local authority thereof.
However, the provisions of paragraphs (1) and (2) shall apply to remuneration and pensions paid by the following administrations or organizations to their employees:
- (a) in the case of Italy:
- (i) the Banca d'Italia (Bank of Italy);
- (ii) the Ferrovie dello Stato (F.S.) (Italian Railways);
- (iii) the Amministrazione delle poste e delle tele-communicazione (PP.TT.) (Administration of Postal and Tele-communication Services);
- (b) in the case of the Federal Republic of Germany:
- (i) the Deutsche Bundesbank (German Federal Bank);
- (ii) the Deutsche Bundesbahn (German Federal Railways);
- (iii) the Deutsche Bundespost (German Federal Post).
(4) Pensions and all other recurring or non-recurring payments under the social security laws of one of the Contracting States by such State, a "Land", a political subdivision or a local authority thereof or by a legal person organized under the public law thereof shall be taxable only in that State, if the recipient is a national of that State not being a national of the other Contracting State.
(5) Indemnification paid by a Contracting State, a "Land", a political subdivision or a local authority thereof in the form of pensions, annuities or other recurring or non-recurring payments as compensation for an injury or damage sustained as a result of hostilities or political persecution shall be taxable only in that State.